Michael Saylor’s Strategy Inc., recognized as the world’s largest public holder of Bitcoin, has recently expanded its cryptocurrency portfolio by purchasing 196 Bitcoin for $22.1 million. This acquisition occurred in the week ending Sunday, coinciding with a dip in Bitcoin prices, which fell below the $110,000 mark. According to a recent filing with the U.S. Securities and Exchange Commission, the purchase was made at an average price of $113,048 per coin, as Bitcoin had started the week above $112,000 before experiencing a drop on Thursday.
Following this latest acquisition, Strategy’s total Bitcoin holdings now amount to 640,031 BTC, which were acquired at an estimated total cost of around $47.35 billion, representing an average purchase price of $73,983 per coin. While Saylor has expressed optimism about Bitcoin’s potential to rebound toward the year’s end, this latest purchase marks one of the smallest weekly Bitcoin acquisitions by the company in recent times, indicating a slowdown in buying activity amid fluctuating market conditions.
Saylor anticipates that Bitcoin will begin to rise again as the market adjusts to current resistance levels and macroeconomic challenges. He stated, “I think that as we work through the resistance of late and some macro headwinds, we’ll actually see Bitcoin start to move up smartly again toward the end of the year.”
In addition to pressures from Bitcoin’s price fluctuations, the performance of Strategy’s common stock, MSTR, has also come under scrutiny. On Wednesday, MSTR fell to $300.7, marking its lowest point since mid-April and signaling a six-month low for the stock. TradingView data indicated that this decline represents a concerning trend for the largest corporate holder of Bitcoin. Analyst Maartunn remarked that the decline was a “painful move” for the company, as investors faced renewed uncertainty.
Despite the downward pressure on both Bitcoin prices and Strategy’s shares, some analysts and investors have pointed out that MSTR has maintained substantial long-term growth. Notably, while the stock has experienced a nearly 30% decline in the current cycle and a significant 56% dip observed in April, it remains up 2,300% during the ongoing bull market. According to TradingView, as of the latest analysis, MSTR has recorded a 2.9% loss over the past six months but has shown impressive growth of 96% over the past year and an extraordinary 2,000% increase over the last five years.
As the cryptocurrency market continues to evolve, investors remain watchful of both Bitcoin’s trajectory and the impact on related equities, with hopes resting on potential recovery in the coming months.
